Chronology of Tagami's scheme of Private-Public Partnership with City Projects
1998 - Private-Public Partnership with Tagami and the City of Oakland. The City sells to Tagami "The Rotunda Building" for $99 dollars then provides Tagami with a deferred loan of $12,000,000.00(million dollars) . Interest is to be paid from 2013 through 2017 at 3% annually.
This should total approximately $30,000.00 per month. No payments to date have been received that reflects the amount due. The repayment of the principal loan of $12,000,000.00 is linked to the sale of "The Rotunda Building". The Disposition Development Agreement" clearly states , that any sale above $38,000,000.00(thirty-eight million dollars) ,after the repayment of the $12 million dollar loan, the net is equally shared (50-50) with Tagami and the City. Tagami makes atleast a $13,000,000.00 (thirteen million dollar) profit. However, there is no language should the sale of "The Rotunda Building" is below $38 million which could mean that Tagami's profit could be $25,000,000.00(twenty-five)million dollars.
This should total approximately $30,000.00 per month. No payments to date have been received that reflects the amount due. The repayment of the principal loan of $12,000,000.00 is linked to the sale of "The Rotunda Building". The Disposition Development Agreement" clearly states , that any sale above $38,000,000.00(thirty-eight million dollars) ,after the repayment of the $12 million dollar loan, the net is equally shared (50-50) with Tagami and the City. Tagami makes atleast a $13,000,000.00 (thirteen million dollar) profit. However, there is no language should the sale of "The Rotunda Building" is below $38 million which could mean that Tagami's profit could be $25,000,000.00(twenty-five)million dollars.
2004 - Private-Public Partnership with Tagami and the City of Oakland. The City sells to Tagami " four parcels that represents "The Rotunda Garage". Three(3) parcels of "The Rotunda Garage" were sold to Tagami for $99 dollars each which totals $297.00. One parcel was leased for $1 per year for five(5) years with an option. There are provisions in the Disposition Development Agree(DDA) which Tagami signed the agreement, that prohibits transfer, conveyance, sell, or use parcels for speculative purpose. The DDA clearly, states when all or portions of each parcels are not developed in the specified time(s),the reversion clause requires the repurchase of the parcel(s)by the City from Tagami. The Alameda County Assessors records shows that parcel #2 has been sold for $152,000.00 for which Tagami received 100% of the profit. The City received no funds from this sale. This is clearly a violation of the terms of the DDA for "The Rotunda Garage"
2004 - Private-Public Partnership with Tagami and the City of Oakland for the Fox Theater Project. The City spent $58,000,000.00(fifty-eight)million dollars than what Tagami initially quote. This amount represents 172 percent increase. In addition,the City provided Tagami a $14.45 million dollar loan in 2006. The Performance Audit Report on the Fox Theatre in Oct. 2011 reflects that there were 526 change orders costing $16,000,000.00(sixteen)million dollars. This report also states that as project manager Tagami was able to sign for upto to $50,000.00(fifty thousand)dollars for each change order , this totaled $6,000,000.00(six million)dollars, However, Tagami was paid four(4)cents of each dollar of the $16,000,000.00 in change orders.
2009 - Private-Public Partnership with Tagami and the Port of Oakland and the City of Oakland for the Redevelopment of the former Oakland Army Base. Tagami was selected first by the Port of Oakland(over experienced developers and financially capable developers)to receive the Exclusive Negotiating Agreement(ENA) for the Port side of the Oakland Army Base. Tagami failed to pay the refundable security deposit of $50,000.00 and other required deposits by the Port. On January 6, 2012 the Port terminated the Exclusive Negotiating Agreement with Tagami and associates.
However, the City of Oakland has continued its Exclusive Negotiating Agreement(ENA) with Tagami, being fully aware of his lack of experience and lack of financing capabilites. In June/July of 2012 the City Council authorized the City Administrator to proceed with the Lease Disposition Development Agreement[LDDA] with Tagami. Tagami and his associate comprise Prologis CCIG Oakland Global LLC On December 4, 2012 the LDDA for the Oakand Army Base was signed The City of Oakland and Prologis CCIG Oakland Global.
It should be noted that when the City authorized the City Administrator to proceed with the LDDA in June/July of 2012 with Prologis CCIG Oakland Global LLC. they possessed no business license throughout 2012. The City Contract Compliance clearly states, that any successful proposer must show proof of a certificate of a business license in the city of Oakland. The City Attorney's legal opinion acknowledges that Prologis CCIG Oakland Global did not possess a business license throughout 2012 in the City of Oakland
However, the City of Oakland has continued its Exclusive Negotiating Agreement(ENA) with Tagami, being fully aware of his lack of experience and lack of financing capabilites. In June/July of 2012 the City Council authorized the City Administrator to proceed with the Lease Disposition Development Agreement[LDDA] with Tagami. Tagami and his associate comprise Prologis CCIG Oakland Global LLC On December 4, 2012 the LDDA for the Oakand Army Base was signed The City of Oakland and Prologis CCIG Oakland Global.
It should be noted that when the City authorized the City Administrator to proceed with the LDDA in June/July of 2012 with Prologis CCIG Oakland Global LLC. they possessed no business license throughout 2012. The City Contract Compliance clearly states, that any successful proposer must show proof of a certificate of a business license in the city of Oakland. The City Attorney's legal opinion acknowledges that Prologis CCIG Oakland Global did not possess a business license throughout 2012 in the City of Oakland